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IPO Details:

• IPO opening Date: July 30, 2025.
• Closing Date: August 1, 2025.
• IPO Size: ₹650.00 crore.
  • Fresh Issue: 7,142,857 equity shares, aggregating up to ₹275.00 crore.
  • Offer for Sale (OFS): 9,740,260 equity shares, aggregating up to ₹375.00 crore.
• IPO Price Band: ₹366 to ₹385 per equity share of ₹10 each.
• Lot Size: 38 shares.
• % allocation investors:
  • Qualified Institutional Buyers (QIBs): Not less than 75% of the Net Offer.
  • High Net-worth Individuals (HNIs) / Non-Institutional Investors (NIIs): Not more than 15% of the Net Offer.
  • Retail Investors: Not more than 10% of the Net Offer.
  • Eligible Employees: Equity shares worth ₹2.00 crore (approx. 51,948 equity shares at upper cap), with a discount of ₹36 per share.
• Lead Managers: Equirus Capital Pvt. Ltd. and DAM Capital Advisors Ltd..
• Registrar: MUFG Intime India Pvt. Ltd..

About the Company:

• History: M&B Engineering Ltd. (MBEL) was incorporated in 1981 as “Manibhai and Brothers (Construction) Private Limited”. It transitioned from a civil engineering firm to focus on manufacturing starting in the late 1990s/early 2000s. In 2002, they introduced self-supported steel roofing technology in India under the brand Proflex, gaining a significant market share. In 2008, they collaborated with Varco Prudent Buildings (VP Buildings) to establish their pre-engineered buildings (PEB) business under the Phenix division.
• Main products/services: MBEL is a leading player in Pre-Engineered Buildings (PEBs) and Self-Supported Roofing solutions. The company’s business is structured into two divisions:
  • Phenix division: Provides comprehensive solutions for PEBs and complex structural steel components, including project design, engineering, manufacturing, and erection. Phenix also manufactures PEBs, primary and secondary structural components, claddings, and standing seam roofs.
  • Proflex division: Offers self-supported steel roofing solutions, known for being 100% leak-proof and ideal for bulk storage facilities like agri-godowns.
• Sales & manufacturing units: The company operates two manufacturing facilities in Sanand, Gujarat, and Cheyyar, Tamil Nadu, with a combined installed PEB capacity of 103,800 MTPA as of March 31, 2025. The Proflex Division utilizes 14 mobile manufacturing units for self-supported roofing systems, allowing for efficient nationwide service. Their manufacturing facility in Sanand is certified by the American Institute of Steel Construction (AISC) and FM Global.
• Employees: As of March 31, 2025, the company has a dedicated in-house project management team of 149 employees.
• Promoters: The promoters are Girishbhai Manibhai Patel, Chirag Hasmukhbhai Patel, Malav Girishbhai Patel, Birva Chirag Patel, Vipinbhai Kantilal Patel, Aditya Vipinbhai Patel, Chirag H Patel Family Trust, Vipin K Patel Family Trust, MGM5 Family Trust, MGM11 Family Trust, and Aditya V Patel Family Trust. Chirag Hasmukhbhai Patel and Malav Girishbhai Patel are the Joint Managing Directors.
• Branches/network: MBEL has a marketing head office in Ahmedabad and a strategic network of regional offices or representatives in key Indian cities, including Mumbai, Chandigarh, Jaipur, Lucknow, Noida, Kolkata, Hyderabad, Patna, Pune, Goa, Ludhiana, and Gurugram. They also have a sales head office in Houston, USA.

Financials:

Post IPO Market Cap: ₹2200.00 crore. P/E FY24: 48.19 times. P/E FY25 28.56 times.

The company has demonstrated strong growth in net profit over the last three fiscals, with a significant jump in FY25, while its top line has shown bit of inconsistency.

Anchor Investors Details:

The company raised ₹291.60 crore from 24 anchor investors.Top 10 Anchor Investors with % Allocation: Abu Dhabi Investment Authority-Stable (12%), HDFC Mutual Fund-HDFC Manufacturing Fund (10.72%), Aditya Birla Sun Life Trustee Pvt. A/C Aditya Birla Sun Life Small Cap Fund (10.29%), Whiteoak Capital Mutual Fund (6.17%), Kotak Mutual Fund-Kotak Manufacture in India Fund (5.14%), Bandhan Mutual Fund-Bandhan Innovation Fund (4.63%), JM Financial Mutual Fund-JM Small Cap Fund (4.63%), ITI Mutual Fund-ITI Small Cap Fund (4.63%), Ashoka India Equity Investment Trust Plc (4.11%), Societe Generale (3.08%).Remaining Anchor Investors: Other anchor investors include Integrated Core Strategies, Pinebridge Global Funds, Edelweiss Mutual Fund, Tata Mutual Fund, Motilal Oswal Mutual Fund, and various other domestic and foreign institutional investors.Total % Allocation to Mutual Funds: 59.16%.

Salient points:

• Use of funds: The net proceeds from the fresh issue will be utilized for capital expenditure on equipment and machinery, building works, solar rooftop grid, and transport vehicles (₹130.58 crore); IT software upgradation (₹5.20 crore); repayment/prepayment of certain borrowings (₹58.75 crore); and the remainder for general corporate purposes. The ₹58.75 million for debt repayment has been solely utilized towards the expansion of the Cheyyar Facility.
• Business scenario: The Indian PEB industry expanded at a CAGR of approximately 8.3% over Fiscals 2019-2025 and is projected to grow at a strong 9.5-10.5% CAGR between Fiscals 2025 and 2030, driven by investments in industrial and infrastructure sectors. The self-supported roofing market in India logged a CAGR of 6.1% between Fiscals 2019 and 2025. Government initiatives like the Production Linked Incentive (PLI) Scheme for specialty steel are expected to positively impact the industry by improving steel availability and quality.
• Business operations: MBEL offers comprehensive turn-key solutions including project design, engineering, manufacturing, and erection. They emphasize efficiency, lesser resource usage, and better output due to factory-made products and controlled environments.
• Revenue Model: The company generates revenue from both its Phenix division (PEBs and structural steel components) and Proflex division (self-supported steel roofing solutions), serving diverse sectors.
• Business strategy: MBEL aims to leverage its leading position in the domestic PEB market and strengthen its presence in the self-supported steel roofing market. They focus on expanding into global markets, particularly the US, for PEBs, aiming for significant growth.
• Litigations: As of July 16, 2025, there are 24 direct tax proceedings against the company involving ₹216.60 million, and 18 indirect tax proceedings involving ₹649.69 million. There is one material civil proceeding against the company involving ₹12.17 million. There are 3 indirect tax proceedings against subsidiaries involving ₹34.00 million.
• Revenue split by region: For the fiscal year ended March 31, 2025, revenue from operations within India was ₹8,369.06 million, and outside India was ₹645.98 million. In FY24, it was ₹7,146.85 million (India) and ₹191.99 million (outside India). In FY23, it was ₹7,654.06 million (India) and ₹602.57 million (outside India).
• Export/import: The company is one of the largest exporters of PEBs from India, having exported to over 20 countries. Since 2020, the major focus for export business has been the United States. Exports of PEB from India increased from ₹35.8 billion in Fiscal 2019 to ₹90.5 billion in Fiscal 2025, with USA being the top export location.
• Capacity utilisation: The total PEB capacity is 103,800.00 MTPA as of March 31, 2025. In Fiscal 2025, the company’s installed capacity was 103,800 MTPA for PEBs and 1,800,000 sq. meters per annum for Self-Supported Roofing. The company proposes to expand its capacity through Offer proceeds despite low capacity utilization levels over the past three years.
• Clients/Order Book: MBEL has delivered solutions to diverse sectors including general engineering, manufacturing, food and beverages, warehousing and logistics, power, textiles, and railways. Key clients include Adani Green Energy, Tata Advanced Systems, Alembic Pharmaceuticals, and Intas Pharmaceuticals. As of June 30, 2025, the company had an order book of ₹8,428.38 million.
• Working capital & inventory days: Net Working Capital Days were 111 in FY25, 62 in FY24, and 66 in FY23.
• Receivables trend: The company’s trade receivables were ₹1,564.06 million in FY25, ₹1,299.71 million in FY24, and ₹1,123.01 million in FY23.
• CAGR Profits/Margins last 3 years:
  • PAT grew by 69% between FY24 and FY25.
  • For the last three fiscals (FY23-FY25), the average RoNW was 22.28%.
  • PAT margins were 3.70% (FY23), 5.65% (FY24), and 7.73% (FY25).
  • RoCE margins were 19.70% (FY23), 19.17% (FY24), and 24.80% (FY25).
  • Profit After Tax CAGR (FY22-24) was 67.3%.
  • Revenue from operations CAGR (FY22-24) was 7.5%.

Peers:

*BirlaNU Limited was formerly HIL Limited. NM indicates Not Meaningful due to negative earnings.

Management commentary: The company is a seven-decade-old, family-owned organization that started as a civil engineering firm. They were pioneers in self-supported roofing technology, fortunate to acquire it from the United States, giving them a first-mover advantage and significant market share, operating pan-India. For PEBs, they collaborated with Varco Prudent Buildings, establishing international standards. Their Phoenix division is known for executing very large-scale, complex projects. They are the only company in India exporting pre-engineered buildings to the US market, holding an AISC certificate. The biggest advantage of PEBs over conventional structures is time-saving, with a 40-50% quicker turnaround time, which helps customers generate revenue faster. Steel construction is also sustainable, as steel is a recyclable material, and their buildings can be dismantled and relocated. The company has focused on bottom-line growth, constantly striving for higher margins. They have diverse customers across various sectors, including large corporates like Adani and Tata Group companies. The company is excited to expand its community with new investors and promises continued growth.

Opinion:

• I intend to apply to the M&B Engineering Limited IPO.
• Post IPO equity capital: Rs. 57.14 crore. P/E for FY 24: 48.19 times. P/E FY25: 28.56 times (annualized).
• M&B Engineering is a leading PEB player with a strong track record of project completion under its Phenix and Proflex divisions. While its top line has shown inconsistency, profit after tax has grown over the years.
• M&B Engineering, a leader in pre-engineered buildings and self-supported roofing, boasts a strong moat with AISC-certified facilities and a robust order book of ₹842.8 crore, outperforming peers l in margins and ROCE. This coupled with strong FY26 growth expected from its Cheyyar facility., integrated operations, high-quality client base, and margin-accretive exports make it attractive for long-term investment. Very reputed clients.
• GMP as per Social Media: ₹60-65x.

• This post is exploratory and educational purposes only.
• Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.